Coinbase Global, Inc. Q2 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Financial Highlights
  • Adjusted EBITDA: $194 million – second consecutive quarter of positive adjusted EBITDA.
  • Cash Flow: Generated $156 million in cash in Q2.
  • Total Resources: $5.5 billion on balance sheet at quarter-end.
  • Transaction Revenue: $327 million – down 13% quarter-over-quarter; attributed to low crypto volatility.
  • Subscription & Services Revenue: $335 million – exceeded outlook due to higher blockchain rewards and interest income.
  • Operating Expenses: $781 million total; recurring opex down nearly 50% YoY compared to Q2 2022.
  • Trading Volume: Declined 37%, outperforming global spot market decline of 48%, indicating market share gain.
Guidance for Q3 2023
  • July Transaction Revenue: ~$110 million.
  • Subscription Revenue: Expected to be at least $300 million.
  • Tech, Dev, and G&A Expenses: Projected between $575M–$625M, slightly higher due to stock-based comp timing.
  • Sales & Marketing: Flat QoQ at $80M–$90M range.
  • Headcount: Remains flat at ~3,400 employees.
Business Developments and Strategy

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Operator: Good afternoon. My name is Tamika, and I will be your conference operator today. At this time, I would like to welcome everyone to the Coinbase Second Quarter 2023 Earnings Call. All lines have been placed on mute to prevent any background noise. [Operator Instructions] I would now hand today’s call over to Anil Gupta, Vice President, Investor Relations. You may begin your conference. Anil Gupta: Good afternoon, and welcome to the Coinbase second quarter 2023 earnings call. Joining me on today's call are Brian Armstrong, Co-Founder and CEO; Emilie Choi, President and COO; Alesia Haas, CFO; and Paul Grewal, Chief Legal Officer. I hope you've all had the opportunity to read our shareholder letter, which was published on our Investor Relations website earlier today. Before we get started, I'd like to remind you that during today's call, we may make forward-looking statements. Actual results may vary materially from today's statements. Information concerning risks, uncertainties and other factors that could cause these results to differ is included in our SEC filings. Our discussion today will also include references to certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are included in our shareholder letter on our IR website. Non-GAAP financial measures should be considered in addition to, not as a substitute for GAAP measures. We are once again using safe technologies to enable our shareholders to post question

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